On Our Technical Watch

21 January 2020

PP7004/02/2013(031762) Page 1 of 5

By Vincent Tee I vincent.tee@kenanga.com.my; Koh Huat Soon I hskoh@kenanga.com.my

Figure 1: Daily Charting – FBMKLCI

Source: Bloomberg, Kenanga Research

Basic Data

52-week High 1,732.27

52-week Low 1,548.45 KLCI Vol 82.67

Current Level 1,588.88 Bursa Vol 2532.7

Intraday High 1,596.39 Bursa Val 1786.42

Intraday Low 1,588.88

Technical Ratings

Resistance 2 1,650 MACD Bearish

Resistance 1 1,630 RSI (14) Neutral

Current Level 1,588.88 Stochastic Overbought

Support 1 1,570

Support 2 1,550 Outlook Bullish

Asian markets were mixed as China kept its loan prime rate • Asian stocks closed mixed as investors stayed cautious on China’s loan prime rate, which was left unchanged. • Back home, the FBMKLCI lost 6.93 points (-0.43%) to close at 1,588.88. • Chart-wise, the index remained below the crucial 1,600-pts level and 20-days SMA. Coupled with the bearish crossover

signal from MACD, we expect the index to experience a near-term consolidation. A resumption of the uptrend could be underway only when the index breaks out from the existing consolidation pattern by breaching the 1,600-psychological mark convincingly.

• From here on, its overhead resistance can be seen at 1,630 (R1) and 1,650 (R2). • Conversely, key support levels can be found at 1,570 (S1) and 1,550 (S2).

Wall Street was closed for Martin Luther King Day.

Daily technical highlights – (NOTION, PADINI) NOTION (Not Rated)

• NOTION gained 8.0 sen (+7.62%) to close at RM1.13 yesterday.

• Chart-wise, the share has been on an uptrend since October last year.

• Yesterday, the stock continued to close higher above all key-SMAs backed by above-average trading volume. Given an uptick in RSI and bullish MACD crossover, we expect the stock to trend higher.

• From here on, overhead resistance can be seen at RM1.20 (R1) and RM1.25 (R2).

• Conversely, downside supports can be identified at RM1.10 (S1) and RM0.930 (S2). PADINI (Not Rated)

• PADINI gained 11.0 sen (+3.22%) to close at RM3.53 yesterday.

• Chart-wise, the stock has experienced a trend reversal since the formation of a double bottom last year.

• Yesterday’s candlestick marked the third bullish candlestick, indicating strong buying interest. Given an uptick in key technical indicator, we expect the share to trend higher.

• Should buying momentum persist, the stock is expected to test overhead resistance at RM4.00 (R1) and RM4.50 (R2).

• Conversely, support levels can be identified at RM3.30 (S1) and RM3.00 (S2).

On Our Technical Watch

21 January 2020

PP7004/02/2013(031762) Page 2 of 5

Figure 2: Daily Charting – Dow Jones Industrial Average

Source: Bloomberg, Kenanga Research

Figure 3: Daily Charting –Notion Vtec Bhd (Not Rated)

About the stock: Name : Notion Vtec Bhd

Bursa Code : NOTION CAT Code : 0083 Shariah Compliant : Yes Market Cap : 377.0 52 Week High/Low : 1.15/0.46 3-m Avg. Daily Vol. : 7,001,739.00 Free Float (%) : 59.96% Beta vs. KLCI : 1.3 Key Support & Resistance Levels

Resistance : RM1.20 (R1) RM1.25 (R2)

Support : RM1.10 (S1) RM0.930 (S2)

Outlook : Bullish

What does the indicator says

MACD : Bullish RSI : Overbought

Stochastic : Overbought

Trend : Bullish

What should you do

Current Share Price : RM1.13

Technical Target : -

Technical Cut-loss : -

Fundamental Call

Kenanga : -

Consensus : -

Source: Bloomberg, Kenanga Research

On Our Technical Watch

21 January 2020

PP7004/02/2013(031762) Page 3 of 5

Figure 4: Daily Charting – Padini Holdings Bhd (Not Rated)

About the stock: Name

: Padini Holdings Bhd

Bursa Code : PADINI CAT Code : 7052 Shariah Compliant : Yes Market Cap : 2,322.4 52 Week High/Low : 4.09/3 3-m Avg. Daily Vol. : 505,803.10 Free Float (%) : 26.95% Beta vs. KLCI : 0.560 Key Support & Resistance Levels

Resistance : RM4.00 (R1) RM4.50 (R2)

Support : RM3.30 (S1) RM3.00 (S2)

Outlook : Bullish

What does the indicator says

MACD : Bullish RSI : Neutral

Stochastic : Overbought

Trend : Bullish

What should you do

Current Share Price : RM3.53

Technical Target : -

Technical Cut-loss : -

Fundamental Call

Kenanga : RM4.00 Consensus : RM3.71

Source: Bloomberg, Kenanga Research

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On Our Technical Watch

21 January 2020

PP7004/02/2013(031762) Page 4 of 5

Unrealised Positions (January 2020)

No CATS

Stock Name Issued Date

(ID) Price @ ID

Target Price

Stop-Loss

Upside Potential

@ ID

Downside Risk @ ID

Reward/ Risk Ratio

@ ID

Last Price

Dividend Received since ID

Gain/ Gain/ Rating Comment/ Action

Code Loss (incl.

Div.) Loss

RM RM (%) (%) (x) RM RM RM (%)

1 6599 AEON CO (M) BHD 28-Sep-18 1.740 1.950 1.620 12.07% -6.90% 1.8 1.350 -0.33 -18.97% BUY

2 0080 STRAITS INTER LOGISTICS BHD 22-Feb-19 0.240 0.300 0.200 25.00% -16.67% 1.5 0.230 0.01 2.08% BUY

3 7579 AWC BERHAD 27-Feb-19 0.770 0.865 0.675 12.34% -12.34% 1.0 0.590 -0.15 -18.83% BUY

Simple Average 16.47% -11.97% 1.42 -11.90%

*Tracker does not include Non-Rated positions

Realised Positions (January 2020)

No CATS

Stock Name Issued Date

Buy Price

Price since Buy Date

Price change since Buy Date (%)

Sell Date Sell

Price

Dividend Received since ID

Gain/ Gain/ Rating Comment/ Action

Code Loss (incl.

Div.) Loss

(H) (L) (H) (L) RM RM RM (%)

Simple Average

On Our Technical Watch

21 January 2020

PP7004/02/2013(031762) Page 5 of 5

Basic Technical Terms:

Reversal Candlesticks Patterns Description

Doji

Dragonfly Doji (Bullish)

Gravestone Doji (Bearish)

Dojis form when a security's open and close are virtually equal. The length of the upper and lower shadows can vary, and the resulting candlestick looks like, either, a cross, inverted cross, or plus sign. Doji convey a sense of indecision or tug-of-war between buyers and sellers.

Engulfing Pattern

A reversal pattern that can be bearish or bullish, depending upon whether it appears at the end of an uptrend (bearish engulfing pattern) or a downtrend (bullish engulfing pattern). The first day is characterized by a small body, followed by a day whose body completely engulfs the previous day's price action.

Hammer (Bullish)

Shooting Star (Bearish)

Hammer candlesticks form when a security moves significantly lower after the open, but rallies to close well above the intraday low. This appears in a downtrend. In contrast, the Shooting Star pattern appears in an uptrend. It opens higher, trades much higher, then closes near its open. It looks just like the Inverted Hammer except that it is bearish.

Inverted Hammer (Bullish)

Hanging Man (Bearish)

The Inverted Hammer is a single-day bullish reversal pattern. In a downtrend, the open is lower, then it trades higher, but closes near its open price, therefore looking like an inverted lollipop. Hanging Man candlesticks form when a security moves significantly lower after the open, but rallies to close well above the intraday low.

Harami

Harami Cross

The Harami is a two-day pattern that can be bullish or bearish. It has a small body day completely contained within the range of the previous body, and is the opposite colour. The Harami Cross is similar to the Harami. The difference is that the last day is a Doji.

Marubozu

A Marubozu candlestick has no shadow extending from the body at either the open, the close or at both.

Morning Doji Star (Bullish)

Evening Doji Star (Bearish)

A Morning Doji Star (Evening Doji Star) is a three-day candlestick bullish (bearish) reversal pattern - a long-bodied black (white) candle extending the current downtrend, a short middle candle that gapped down (up) on the open, and a long-bodied white candle that gapped up (down) on the open and closed above (below) the midpoint of the body of the first day.

Spinning Top

Spinning Tops are candlestick lines that have small bodies with upper and lower shadows that exceed the length of the body. They are similar to the Doji candlesticks, and signal indecision.

Source: Various

Common Chart Patterns

Revers

al P

att

ern

s

Inverted Head & Shoulders (Bullish)

Head & Shoulders (Bearish) Wedge Reversal (Bullish/ Bearish)

Double Top (Bearish) Double Bottom (Bullish)

Co

nti

nu

ati

on

Pa

ttern

s Symmetrical Triangle

(Bullish/ Bearish) Ascending Triangle

(Bullish) Channels (Bullish/ Bearish) Flags (Bullish/ Bearish) Pennant (Bullish/ Bearish)

Source: Various

This document has been prepared for general circulation based on information obtained from sources believed to be reliable but we do not make any representations as to its accuracy or completeness. Any recommendation contained in this document does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may read this document. This document is for the information of addressees only and is not to be taken in substitution for the exercise of judgement by addressees. Kenanga Investment Bank Berhad accepts no liability whatsoever for any direct or consequential loss arising from any use of this document or any solicitations of an offer to buy or sell any securities. Kenanga Investment Bank Berhad and its associates, their directors, and/or employees may have positions in, and may effect transactions in securities mentioned herein from time to time in the open market or otherwise, and may receive brokerage fees or act as principal or agent in dealings with respect to these companies.

Published and printed by: KENANGA INVESTMENT BANK BERHAD (15678-H) Level 17, Kenanga Tower, 237, Jalan Tun Razak, 50400 Kuala Lumpur, Malaysia Telephone: (603) 2172 0880 Website E-mail: research@kenanga.com.my

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